United States Securities and Exchange Commission v. Drive Planning, LLC

CourtDistrict Court, N.D. Georgia
DecidedJuly 2, 2025
Docket1:24-cv-03583
StatusUnknown

This text of United States Securities and Exchange Commission v. Drive Planning, LLC (United States Securities and Exchange Commission v. Drive Planning, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Securities and Exchange Commission v. Drive Planning, LLC, (N.D. Ga. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

UNITED STATES SECURITIES AND EXCHANGE COMMISSION,

Plaintiff, Civil Action No. 1:24-cv-03583-VMC v.

DRIVE PLANNING, LLC, and RUSSELL TODD BURKHALTER,

Defendants,

and JACQUELINE BURKHALTER, THE BURKHALTER RANCH CORPORATION, DRIVE PROPERTIES, LLC, DRIVE GULFPORT PROPERTIES LLC, and TBR SUPPLY HOUSE, INC.,

Relief Defendants.

OPINION AND ORDER Before the Court is the Receiver’s Motion for Turnover of and Imposition of Constructive Trust on Real Property Traceable to Drive Planning, LLC (“Motion,” Doc. 114). Through the Motion, the Receiver seeks an order requiring the immediate turnover of real property in the possession and titled in the name of Julie Ann Edwards, and imposing a constructive trust on such real property in favor of the receivership estate. Ms. Edwards filed a response to the Motion (Doc. 123). The Receiver filed a Reply in support of the Motion. (Doc. 130). For the

reasons that follow, the Court will grant the Motion. Background1 This matter arises in a civil action brought by the United States Securities and Exchange Commission (“SEC”) against Drive Planning, LLC (“Drive

Planning”) and the company’s CEO Todd Burkhalter under federal securities laws. (Declaration of Cody C. Turley dated Aug. 9, 2024, “Turley Decl.,” ¶ 4, Doc. 2-6; see generally Compl., Doc. 1).

I. Drive Planning Drive Planning, under the direction of Mr. Burkhalter, offered an investment opportunity called the “Real Estate Acceleration Loan” or “REAL” program. (Turley Decl. ¶ 7). Drive Planning produced and distributed

advertisements for REAL in the form of brochures, online videos, social media posts, and web pages. (Id. ¶ 8). These advertisements were distributed to the general public through means such as U.S. Mail, email, YouTube, Facebook, and the company’s website. (Id.).

1 The Court draws the following factual background from the declarations of record. Fed. R. Civ. P. 43(c). Quotation marks are omitted from declaration excerpts to improve readability. Drive Planning’s offering materials for REAL stated that the investment was a safe and low risk opportunity for investors to generate passive income. (Id. ¶ 9).

The advertisements and offering materials stated that an individual could invest with a minimum of $20,000 and receive a guaranteed return of 10% every 90 days. (Id.). The advertisements stated that Drive Planning would use investments in

REAL to fund bridge loans to real estate developers. (Id.). Drive Planning claimed that such bridge loans were fully collateralized by real estate and other assets. (Id.). Financial and bank records show that from September 2020 through June 2024 Drive Planning and Mr. Burkhalter raised $372 million in REAL. (Id. ¶ 10).

During this period, more than 2,500 investors invested funds in REAL. (Id. ¶ 11). These investors reside in at least 48 states (including Georgia), two territories, and multiple countries. (Id.).

The SEC contends that Drive Planning did not generate sufficient revenue to pay the promised returns to investors in REAL, Drive Planning and Mr. Burkhalter used investor funds to pay returns to other investors, and that Mr.

Burkhalter used investor funds for what appear to be large personal purchases. (Id. ¶ 12). As a result of its investigation, the SEC filed this case on August 13, 2024 and sought the appointment of a receiver. (Docs. 1, 2). II. Receivership History On August 13, 2024, the Court entered an Order appointing Kenneth D.

Murena as Receiver over “all assets of Defendant Drive Planning, LLC (‘Receivership Assets’) and the assets of Defendant Burkhalter and the Relief Defendants that: (a) are attributable to funds derived from investors or clients of the Defendants; (b) are held in constructive trust for the Defendants; and/or (c)

may otherwise be includable as assets of the estates of the Defendants (collectively, the ‘Recoverable Assets’).” (“Receivership Order,” Doc. 10 at 1–2). The Court also took “exclusive jurisdiction and possession of the assets, of whatever kind and

wherever situated, of” Drive Planning. (Id. ¶ 1). The Receivership Order further provided the Receiver to take possession of the receivership estate as follows: The Receiver is authorized to take immediate possession of all assets, bank accounts or other financial accounts, books and records and all other documents or instruments relating to the Receivership Defendant. All persons and entities having control, custody or possession of any Receivership Property are hereby directed to turn such property over to the Receiver. . . . The Receivership Defendant, as well as its agents, servants, employees, any persons acting for or on behalf of the Receivership Defendant, and any persons receiving notice of this Order by personal service, facsimile transmission or otherwise, having possession of the property, business, books, records, accounts or assets of the Receivership Defendant are hereby directed to deliver the same to the Receiver, his agents and/or employees. . . . The Receiver is authorized to take immediate possession of all real property of the Receivership Defendant, wherever located, including but not limited to all ownership and leasehold interests and fixtures. . . . (Id. ¶¶ 15–16, 19). III. The Edwards Property Julie Ann Edwards was the Chief Administrative Officer and agent/advisor of Drive Planning. (Declaration of Kenneth D. Murena, Receiver, dated May 12, 2025, “Receiver’s Decl.,” ¶ 4, Doc. 114-1). On June 6, 2024, $630,000 was transferred from Drive Planning’s Truist account no. ending in 2951 to Ms. Edwards’s Wells

Fargo checking account. (Id. ¶ 5). An additional $175,000 was transferred from the same Drive Planning Truist Bank account to Ms. Edwards between November 2023 and April 2024. (Id. ¶ 6). At the time the $630,000 and $175,000 were transferred from Drive Planning’s Truist account no. ending in 2951 to Julie Ann

Edwards’s Wells Fargo checking account, Drive Planning’s account contained millions of dollars of Drive Planning investor funds and was used by Drive Planning to receive and disburse investor funds. (Id. ¶ 7).

On September 27, 2024, a Limited Warranty Deed was executed and recorded in the public record by the grantor Orchards of South Forsyth LP, transferring its interest in property located in Cummings, Georgia (the “Edwards Property”), to Julie Ann Edwards. (Id. ¶ 3).

Based on the Receiver’s investigation into the purchase of the Edwards Property and a review of the relevant Settlement Statement (Doc. 114-3), the Receiver confirmed that funds that Ms. Edwards had received from Drive

Planning were used to purchase the Edwards Property, including the down payment and closing costs. (Receiver’s Decl. ¶¶ 8–9). Specifically, the total purchase price of the Edwards Property was $666,460.00, and Ms. Edwards’s closing costs were $7,443.34, and therefore, Ms. Edwards used a total of

$673,903.34 in misappropriated investor funds to purchase the Edwards Property. (Id.). The Receiver filed this Motion seeking turnover of the Edwards Property on

May 13, 2025. (Doc. 114). Ms. Edwards agreed to email service of the Motion, which she received on May 13, 2025. (Doc. 116). Discussion I. Jurisdiction and Venue The Court has subject matter jurisdiction over this proceeding regarding

estate property by virtue of the Receivership Order. Riehle v. Margolies, 279 U.S. 218

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